LTC/USD turns deaf ear to positive fundamentals
- LTC/USD stays marginally above $41.00, as the recovery stalled at $42.00.
- The number of Litecoin wallets may exceed 55 million.
Litecoin is the seventh largest digital asset with the current market value of $2.68 billion and an average daily trading volume of $1.66 billion. The coin knocked at $42.00 during early Asian hours and retreated to $41.30 by the time of writing. LTC/USD has barely changed both a day-to-day basis, though it is down over 1% since the beginning of Tuesday.
The number of Litecoin wallet addresses may exceed 55 million within the next 24 hours according to the recent tweet of Litecoin Foundation. While the growing number of wallets may be seen as a sign of growing adoption, some community members point out that these on-chain fundamentals have little effect on LTC price.
At the time of writing, only 21% of all LTC holders are making money, while 75% are deep in red. The average balance of LTC addresses is about $1,000, while an average transaction size is $2,700, which is much lower from the 7-day average of $3,400, according to Intotheblock data.
LTC/USD: Technical picture
On the intraday charts, LTC/USD failed to settle above psychological $42.00 reinforced by 1-hour SMA100. The price topped at $42.23 on Monday only to retreat to $41.30 by press time. Also, the coin slipped below 1-hour SMA50 (currently, this MA is registered at $41.40), now it serves as a local resistance. A sustainable move above this area is needed for the upside to gain traction with the next focus on $41.80 (1-hour SMA200) and $43.30 (the resistance area that capped the recovery on June 26.)
The RSI on 1-hour chart points downwards, which means that short-term bearish sentiments may prevail at this stage. If the sell-off gains traction, LTC may retreat towards psychological $40.00. The next strong support comes at recent low of $39.44 and $38.00, which is the lowest level since April 16.
LTC/USD 1-hour chart